Higher Value, Lower Taxes

December 26, 1999|Humberto Cruz

Pioneer Investment Management (800-225-6292) has opened Pioneer Tax-Managed Equity Fund, which seeks long-term growth of capital with a value approach.

The fund also seeks to minimize the impact of federal income taxes on returns by using several "tax-efficient" strategies, said portfolio manager John A. Carey. The fund tries to offset gains with losses within the portfolio and uses the so-called HIFO (highest cost in, first out) accounting. That means that the securities that cost the most to acquire are the ones sold first.

Goldman Sachs launches Net fund

Goldman Sachs (800-292-4726) has launched the Goldman Sachs Internet Tollkeeper Fund, which invests in growth companies it expects will benefit from expansion of the Internet.

The fund focuses on established telecommunications, media, technology and Internet companies that grow revenue by increasing traffic to Web sites and are able to increase prices for their products and services. According to the fund's prospectus, these are primarily companies that provide access, content, services and infrastructure to Internet service providers and users.

Evergreen, Warburg offer new funds

Evergreen (800-343-2898) plans to launch Evergreen Tax-Free High Income, which will invest about 80 percent of its portfolio in municipal bonds. The bonds can have any credit rating or maturity. Warburg Pincus (800-927-2874) will offer Warburg Pincus Large Company Growth Fund, which will invest primarily in stocks of U.S. companies with market capitalization of more than $5 billion.

Berkshire hurts Sequoia Fund

Sequoia Fund, ranked among the top large-value funds for much of its 29-year history, is headed for its worst year vs. the Standard & Poor's 500 Index.

One of the reasons for the decline was Berkshire Hathaway Inc. A shares, which accounted for 30 percent of the $4.32 billion Sequoia Fund's holdings as of June 30, according to Morningstar Inc. Shares of Berkshire, the company Omaha billionaire Warren Buffett runs, have fallen 23 percent this year, according to Bloomberg.

Sequoia is down 19 percent year-to-date, lagging the S&P by 35 percentage points. Its worst previous showing against the benchmark was in 1980, when it lagged by 19 percentage points, according to Morningstar.